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China to take 3 to 5 years to pose threat to memory chip industry

Nanya Tech president investing 'millions of dollars' to prevent leaks to Chinese competitors

President Lee Pei-ing of Nanya Technology said the DRAM industry should stay healthy through 2018. (Photo by Cheng Ting-fang)

NEW TAIPEI CITY, Taiwan-- For Taiwan's leading memory chip maker Nanya Technology, China's ambition to build up a competitive semiconductor sector is a threat to the balance of the industry, although it will not have an impact before three to five years, according to a top company executive.

"Currently, the industry's key players are in control over their output expansion and we don't see any incentive at the moment for them to license technology to new players in China," said Lee Pei-Ing, president of Nanya Tech, in an interview with the Nikkei Asian Review on July 27, adding that it would take at least three to five years for Chinese challengers to catch up to the major players or even cause oversupply issues in the industry.

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